Head-To-Head Contrast: GoodRx (NASDAQ:GDRX) and RingCentral (NYSE:RNG)

RingCentral (NYSE:RNG) and GoodRx (NASDAQ:GDRX) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares RingCentral and GoodRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RingCentral	-2.43%	-12.34%	3.57%
GoodRx	-2.05%	5.35%	2.51%

Analyst Ratings

This is a breakdown of current ratings for RingCentral and GoodRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RingCentral	1	7	5	0	2.31
GoodRx	0	3	6	1	2.80

RingCentral currently has a consensus price target of $37.69, suggesting a potential upside of 43.10%. GoodRx has a consensus price target of $8.18, suggesting a potential upside of 82.89%. Given GoodRx’s stronger consensus rating and higher possible upside, analysts clearly believe GoodRx is more favorable than RingCentral.

Risk & Volatility

RingCentral has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares RingCentral and GoodRx”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RingCentral	$2.40 billion	1.00	-$165.24 million	($0.64)	-41.16
GoodRx	$792.32 million	2.16	-$8.87 million	$0.05	89.40

GoodRx has lower revenue, but higher earnings than RingCentral. RingCentral is trading at a lower price-to-earnings ratio than GoodRx, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

98.6% of RingCentral shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 7.0% of RingCentral shares are held by insiders. Comparatively, 4.2% of GoodRx shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

GoodRx beats RingCentral on 10 of the 15 factors compared between the two stocks.

About RingCentral

RingCentral, Inc., together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company’s products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience. It provides RingCentral Video, a video meeting service that includes the company’s RCV video and team messaging capabilities; offers video and audio conferencing, team messaging, file sharing, contact, task, and calendar management, as well as pre-meeting, in-meeting, and post-meeting capabilities. In addition, the company offers RingCentral Professional Services, which include consultation, UCaaS and CCaaS implementation, VoIP phone system adoption, configuring custom workflows, customer and user onboarding, ongoing support, advanced support, managed services, and more. It serves a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, state and local government, and others. It sells its products to enterprise customers, as well as small and medium-sized businesses through resellers and distributors, partners, and global service providers. RingCentral, Inc. was incorporated in 1999 and is headquartered in Belmont, California.

About GoodRx

GoodRx Holdings, Inc., together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices. It also offers other healthcare products and services, including subscriptions, and pharma manufacturer solutions, as well as telehealth services through the GoodRx Care platform. It serves pharmacy benefit managers who manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was founded in 2011 and is headquartered in Santa Monica, California.